Self-interest will typically cause a duopoly's (i) total level of output to exceed the monopoly level.
(ii) total level of output to exceed the competitive level.
(iii) price to fall short of the monopoly price.
A)(i) and (ii)
B)(i) and (iii)
C)(ii) and (iii)
D)(i), (ii), and (iii)

Question

Self-interest will typically cause a duopoly's (i)	total level of output to exceed the monopoly level.
(ii)	total level of output to exceed the competitive level.
(iii)	price to fall short of the monopoly price.
A)(i) and (ii)
B)(i) and (iii)
C)(ii) and (iii)
D)(i), (ii), and (iii)

Quizplus · Accepted Answer

Self-interest in a duopoly will lead to a competitive behavior where both firms will produce more output than a monopolist but less than a perfectly competitive market. This leads to the total level of output exceeding the competitive level, but the price will fall short of the monopoly price. Therefore, statement (i) is true, but statement (ii) is also true, and statement (iii) is false. The best choice is (B), as it includes the correct statements.

Self-Interest Will Typically Cause a Duopoly's (I) Total Level of Output